The No. 3 in international liner shipping, France’s CMA CGM, transported more goods but earned less money than in the previous year.
Although the shipping company led by Rodolphe Saadé recorded an increase in business volume in the second quarter due to sustained demand, its operating result fell by 4% compared to the previous year.
The rerouting of most ships around the Cape of Good Hope, taken by almost all shipping companies following the Houthi attacks in the Red Sea, has extended transit times and made cargo space more expensive. CMA CGM has also benefited from this.
The transport volume increased by 6.8% to almost six million TEU compared to 5.6 million TEU in the same period of the previous year. However, this did not pay off financially despite the increase in freight rates. Revenue fell by -0.8% to just under 8.3 billion dollars. Profit fell by the same amount (-0.9%) from just under US$2.2bn to US$1.98bn.
CMA CGM continues to invest in the fleet
“We have adapted to respond to the operational challenges,” commented CEO Rodolphe Saadé on the quarterly results. He referred to the geopolitical tensions, increasing cargo volumes and the resulting bottlenecks in some ports. Among other things, CMA CGM had launched the “French Peak Service” to meet the high demand between Asia and Europe.
The company is also continuing to invest in its fleet. Most recently, the shipping company ordered twelve more LNG ships from Hyundai Heavy Industries (HHI), each with a capacity of 15,000 TEU. Once they are delivered in 2027, they should help to achieve carbon-free operations by 2050.
The increase in spot freight rates that began in the first quarter continued in the second quarter. According to the figures, revenue for the entire Group amounted to US$13.1bn in the second quarter of 2024, an increase of 6.8%, which is attributable to higher revenue in the logistics business. This also includes the consolidation of Bolloré Logistics.
EBITDA amounted to US$2.48bn, around 4.3% less than in the same period of the previous year. The profit margin fell by 2.2% points to 18.9%. The Group reported a net profit of US$661m, which corresponds to a year-on-year decline of US$670m.
